Cement industry posts 5.52 percent growth in first eight months of fiscal year 2015

During the first eight months of current fiscal year, cement industry has posted a growth of 5.52 percent as compared with same period during last fiscal year. Total despatches during this period were 22.78 million tons against 21.59 million tons during corresponding period of last fiscal year.
"Overall domestic consumption has increased by 9.12 percent to 17.782 million tons from 16.296 million tons last year. Exports registered a decline of 5.55 percent from 5.292 million tons to 4.988 million tons during the first eight months of current fiscal year," All Pakistan Cement Manufacturers Association (APCMA) spokesman said this here on Friday.
During the month of February 2015, local sales of cement posted healthy growth of 6.96 percent while exports showed 21.08 percent substantial decline, resulting in an overall nominal growth of 0.97 percent compared to same month of last fiscal year. The overall domestic and export volumes were 2,297,568 tons and 460,510 tons respectively during February 2015 as compared to 2,148,083 tons and 583,480 tons during February 2014. The domestic sales in north during February 2015 were 1,885,982 tons as compared to the domestic sales of 1,778,418 Tons during same month last year showing growth of 6.05 percent.
The local sales in south during February 2015 were 411,586 tons compared to the local sales of 369,665 tons during same month of last year showing growth of 11.3 percent. Exports from southern units marginally increased to 209,461 tons during February 2015 against 201,993 tons during February 2014. However exports from north massively declined from 381,487 tons during February 2014 to 251,049 tons during February 2015 ie by 34.19 percent. Total despatches increased from 2.731 million tons during February 2014 to 2.758 million tons during February 2015 showing marginal increase of 0.97 percent.
Mentioning the declining trend in exports APCMA spokesman said that huge quantity of Iranian cement is being imported with evasion of duty and the same is badly affecting our markets.
Sources said that political turmoil and poor law and order in Iraq has also slashed the import of cement from Iran while Azerbaijan that is one of the major importers of Iran's cement, has gained self-sufficiency and reduced import of cement from Iran. After losing major markets, Iran has surplus cement and Pakistani importers are lured to import and are involved in tax evasion.
Moreover, different factors including high tariffs of gas and electricity, hike in other input prices, duty on imported coal, devaluation of Rupee, expensive labour, poor law and order situation and non-tariff barriers imposed by India have already very badly affected the cement dynamics of the country. However, since last year, some improvement was observed owing to government initiatives for infrastructure development and other initiatives, sources said.